Hi Rahul, I continue to invest via Property Partner. This year was tough – some tenants have stopped paying the rent which forced PP to freeze the mortgage payments across all properties. For this to happen they had to suspend dividends to investors.

I’ve written about property investing during coronavirus here: https://www.foxymonkey.com/property-partner-coronavirus/

Overall, I think the university accommodation properties (1/3rd of my portfolio) have been hit the hardest but I’m not in a rush to sell. Other than that, I hear UK property is up 3.7% this year which should be good for the rest of my portfolio. How about you? Have you invested with them?

It would be good to know your thoughts 1 year on and post covid. How is your portfolio doing in terms of dividend yield, valuations etc?

Ouch, that must have hurt, SN. The fact that some people had invested just a month before the new rules were introduced is exactly why this is unfair the way it happened. I think just holding onto your property until the share price reaches its previous level is better than selling, indeed.

Hi Aditya, makes sense, I understand Property partner need to work really hard now to restore customers’ confidence. I believe they already knew about the consequences before making the decision to increase their fees but went on nevertheless.

As I also said, the retrospective nature of the fees and no way out is what bothered me the most… not so much the AUM fee per se.

Thanks for bringing this to our attention. I understand the rationale for increasing the fees and charges but the retrospective nature of this fee increase (specially with no recourse to liquidate and pull out except at a loss) indeed bothers me as the first thought that comes to mind is if they have done this they can do it again in the future.

I am not sure if I will go ahead with this now. Will keep you posted.

Regards,
Aditya

I’m personally pretty ticked off as I only invested £1000 (last month), I paid a high premium which saw my 1k investment turn into roughly £923 after the fees and premium (my own fault), now the raised fees make my £923 investment almost worthless!

I would love to pull out now, although, as you said, I’d have to take an even bigger hit. So, I’ll probably end up leaving it in there for another year or two and seeing if the share price bounces back a bit.

I have been forced to take the advertising off my blog though as not many of my readers will be looking to invest 50k+ in a p2p platform! (and I couldn’t recommend that)

Thanks for writing this up!